Many people think they are out of options when they receive a Notice of Delinquency from their mortgage lender, but the reality is that there are some steps that can be taken to help save the family home. Texas individuals and families facing a foreclosure should work to understand the process and laws in detail in order to respond in the best possible way. With the right information and support, slowing down the process of foreclosure may be a possibility.
The first thing Texas individuals should do when facing foreclosure is to learn as much as possible about state laws related to mortgages and delinquency. Speaking with a lawyer is often the most efficient way to gather this information. A lawyer can also help to guide a person through their possible options under Texas law.
After speaking with a lawyer, reaching out to the lender is the next step. The cost of foreclosure is high for them as well, so chances are they will be open to working something out with the borrower in many cases. They may offer options like refinancing, repayment plans, forbearance or loan modification to help change the situation.
A final option that people can look into is filing for bankruptcy. In Chapter 13 bankruptcy, for example, people can keep their property provided they pay back some or all debt through a repayment plan. This might be a good response to foreclosure for Texas individuals facing temporary hardship. A lawyer can also help individuals file the correct paperwork should bankruptcy be the best option.